Benton Harbor City Commissioners are being asked to make two more transfers of city income tax money to cover expenses.

At a meeting of the Legislative Committee this week, City Manager Alex Little said the first transfer is to help the city meet its obligations for several grant-funded projects. Although grants are to pay those costs, he said the city still has to cover them upfront and then be reimbursed by the state. So this transfer would essentially be like borrowing from the income tax fund.

“It’s really sort of an advance because they’re going to be paid back and go right back into the income tax fun,” Little said.

Commissioner Emma Kinnard questioned the repeated income tax transfers, saying the city needs a finance director to better manage funds.

“We haven’t even got the budget ready for this year’s budget and it’s due in a matter of days from now,” Kinnard said.

Kinnard also questioned why the city appeared to have a windfall for a few years recently, only for it to dry up. Little said that was the result of one-time federal allocations related to the COVID pandemic.

“You had $10 million that was provided in ARPA funds from the federal government. And I don’t know when — not in the 40 years that I’ve been involved with the city, do I ever remember them having $10 million. But when we did expend it the way we did, it went away. And back to reality.”

Also this week, Little requested permission to transfer another $156,000 in income tax money to pay for Medic 1 ambulance service for the rest of the year now that the agency has increased fees charged to the city. Commissioner Sharon Henderson objected, saying the city should negotiate a more reasonable rate with Medic 1.

“I agree that we need to continue ambulance service, but Medic 1 doesn’t need to do all of their repairs and changes in one year to put hardships on communities like ours and others,” Henderson said.

Henderson called the Medic 1 rate increase racially-motivated, noting Benton Harbor’s costs are rising by more than most other communities being served. Commissioner SaTanna Warren also said Little should meet with Medic 1.

“Anytime you have a price increase, it should be a negotiation done,” Warren said. “ You shouldn’t just fold your cards and say, ‘Oh yeah, I’ll give you the money.’ It should be a negotiation done, and that’s what I recommend. It should not be just paying them, especially with this unreasonable increase.”

Little said he doesn’t agree with the Medic 1 increase, but the service has indicated to him why Benton Harbor was hit harder than others.

“They felt as though we had more rides than anybody else and they said that the people who ride, when they get the bill for their portion, don’t pay it. Well, these are basically Medicaid and Medicare patients, and if they had the money to pay they probably wouldn’t be on there.”

Commissioner Diedre Fields said she has spoken with Medic 1 Director Jason Wiley and he’s agreed to come and speak to commissioners at an upcoming committee meeting. Expect to hear more later.

In the meantime, the Legislative Committee referred both of Little’s transfer proposals to the Personnel and Finance Committee for more discussion.